“This teetering tower of negative issues is a perfect reason for a mass shareholder exodus.”
“This stock remains significantly overpriced, with a book value (price/net worth) under $2, a price to sales ratio of over 25x, a large negative profit margin, and a negative price/earnings ratio. All the new shares will make the negative fundamental picture even worse.”
Ah shit - I never bought any. Can I do the wallstreetbets thing and bet against it or whatever?
Don’t laugh - I am stupid when it comes to stock market shit. But I’m just curious how it would work in this case and I don’t use Reddit anymore so if someone knows, thanks.
Surewhynotlem is right…buuuut. Shorting is very much like betting, in that the more people who bet the same way, the worse those odds get; like how a bookmaker does things to balance cash in vs cash out.
The bookie reduces exposure by changing payout odds as betting increases on one side, so you win less and less as more people buy in on a specific bet over time.
In this case, the fees, which are the price of “buying” the short bet go up and up as more people get in line to short. That means the short has to go very far very fast to make up the initial share cost plus fees.
TLDR, you could short the stock, but so many people already have, the fees are starting to become prohibitive unless you have a large bankroll for investing.
This is a helpful explanation and it’s easy to understand, so thank you. I won’t be taking part in shorting it, but I was genuinely curious so I do appreciate you taking the time to explain it all :)
Completely unrelated, I love how polite everyone and especially you were.
Same! Lemmy is so much more welcoming and understanding compared to the keyboard warriors on Reddit - the inclusivity really helps folks like me ask questions that might seem stupid to others and not feel like I’m going to get downvoted to oblivion/insulted. So thank you everyone <3
It’s called “shorting” the stock, and I think anyone can do it.
Jesus that’s the genius play I didn’t think about. Short the shit out of it.